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| OTT Content Market |
The OTT Content Market is estimated to be valued at US$ 132.68 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The OTT content market includes content delivered via the internet without
involvement of multiple system operators in the control or distribution of the
content. This eliminates the need to pay high subscription fees to cable
television services and allows convenient access anywhere, anytime on devices
like mobile, tablet, PC and smart TVs. The on-demand nature enables consumers
to watch content as per their convenience without following a fixed programming
schedule.
Market key trends:
One of the key trends driving growth in the OTT content market is the growing popularity
of web series and movies available on-demand. Unlike television, OTT platforms
allow content creators flexibility in storytelling by removing constraints on
episode runtime or censorship rules. This has led to a boom in high quality,
niche web series catering to diverse interests of audiences. Major players are
investing heavily in producing original content like Series, films and
documentaries to attract new subscribers and reduce dependency on third party
content. The availability of low cost data plans and high-speed internet also
allows easy streaming of high definition videos on smartphones.
Porter’s Analysis
Threat of new entrants: The OTT content market requires huge capital
investment. However, the entry of global players with strong financial backup
in the market poses high threat of new entrants.
Bargaining power of buyers: The availability of substitutes provides high
bargaining power to the buyers. They can switch to alternative options easily
if not satisfied with service or price.
Bargaining power of suppliers: Major OTT players produce their own content
in-house, reducing dependency on content suppliers and lowering their
bargaining power.
Threat of new substitutes: Emergence of new technologies like virtual reality
and 5G can provide substitutes to existing OTT platforms.
Competitive rivalry: Intense competition exists between global players to
acquire new customers.
SWOT Analysis
Strength: Variety of content across genres, Heavy investments in original
content, personalization of content experience.
Weakness: Susceptible to cyber threats, dependency on internet connectivity,
piracy issues.
Opportunity: Scope of growth in developing regions, Expanding customer base,
Collaborations with telcos.
Threats: Stringent regulations, Shift of customer preference, Disruption from
new technologies.
Key Takeaways
The global OTT
Content Market Share is expected to witness high growth, exhibiting CAGR of 14.% over the forecast period,
due to increasing digitization and high-speed internet penetration. The rising
number of smart device users and evolving consumer preference towards OTT
platforms have been major market growth drivers.
Regionally, North America dominated the OTT content market in 2023 with highest
revenue share of over 35%, driven by high spending on digital content in
countries like US and Canada. However, Asia Pacific is anticipated to emerge as
the fastest growing region during the forecast period, propelled by large
population, increasing disposable incomes and rapid technological adoption in
India and China.
Key players operating in the OTT content market are Akamai Technologies, Apple
Inc., Google Inc., LeEco, Netflix, Microsoft Corporation, Amazon, Inc.,
Facebook, Inc., IBM Corporation, and Limelight Networks. The players are investing
heavily in developing original and exclusive content libraries to attract new
subscribers and strengthen their market presence. They are also collaborating
with telecom operators to bundle their services for gaining additional
customers.
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